Expert Tax Services for Small Businesses

Used by sole proprietors and single-member LLCs, Schedule C is filed alongside Form 1040 to report income and expenses from a business. This form includes sections for detailing gross receipts, cost of goods sold, and deductions such as advertising, office expenses, and vehicle costs. It determines the business's net profit or loss, which is then subject to self-employment tax and personal income tax. 

Schedule E is used to report income or loss from rental real estate, royalties, partnerships, S corporations, estates, and trusts. For rental property owners, the form captures rental income, expenses such as property taxes, insurance, mortgage interest, and repairs, and calculates the net income or loss. It also allows deductions for depreciation, providing a tax advantage for property owners. If the rental activity qualifies as a passive activity, losses may be limited. Schedule E is typically filed alongside Form 1040 and is essential for accurate reporting of supplemental income 

Form 1065 is filed by partnerships to report income, deductions, gains, and losses. While the partnership itself doesn’t pay taxes, it issues Schedule K-1 to each partner, detailing their share of the income or loss, which they report on their individual tax returns. Form 1065 ensures transparency and proper allocation of profits and tax responsibilities among partners.

C Corporations use Form 1120 to report income, deductions, and taxes owed. Unlike pass-through entities, the corporation pays taxes directly on its profits. The form captures gross income, deductions, and credits to calculate taxable income. Shareholders are taxed separately on dividends, creating the potential for double taxation. 

S Corporations file Form 1120S to report income, deductions, and gains. As a pass-through entity, income flows through to shareholders via Schedule K-1 for individual tax reporting. The form is designed to avoid double taxation by taxing income at the shareholder level only, not at the corporate level. 

Form 1041 reports income earned by estates or trusts during administration. Income is either taxed to the entity or passed to beneficiaries using Schedule K-1. The form ensures proper accounting for distributions and deductions like charitable contributions and administrative costs. 

Nonprofits file Form 990 to provide transparency about their finances and activities. It discloses revenue sources, expenses, executive compensation, and major programs. Although nonprofits don’t pay income taxes, filing is essential for maintaining tax-exempt status and public accountability.